Charts, Bruh: TAX RETURN SEASON BITCHES

Peep this chart, bruh: 

Bloomberg Tax Returns

(FYI: a tax refund is the money that the government pays you back for if [and most likely when] the government charged you for more taxes than they should have during a given year. If the taxes paid on your tax return exceed the taxes you should have paid during the year, you receive a refund.)

It’s tax return season bitches, which means most people will receive a refund in their bank account due to Uncle Sam overreaching into your pocket. A tax refund is a sexy-ass thing of beauty that allows people to breath a little easier financially for a month… or ball the fuck out. An annual tax refund is the sole freckle of heavenliness on the disgusting and ugly face that is the American tax system. While the American tax system manages to bend Americans over and repeatedly rail them, paycheck after paycheck, a tax refund helps people tolerate the system the slightest bit more (or pretend it’s tolerable that Uncle Sam takes 15%-40% of your hard-earned income). Ok, enough with the refund-literary-masturbation, back to the chart.

I love this one. The chart above (via Bloomberg) shows the top-3 things that consumers plan on spending their annual tax refund on. Of the +7,000 individuals polled, 50% stated that they will save whatever money they receive after following their tax returns. Paying down debt and vacation came in 2nd and 3rd with 35% and 15%, respectively.

At first glance, one might think this is good news. It appears Americans are spending their
income responsibly and with the future in mind. Americans should be more prepared and well-off if and when the economy takes another turn for the worse. People should be saddled with less debt and have better prospects for retirement. But here’s the thing: this Student Debt Cartoonis NOT good for the overall economy. The economy grows and businesses thrive when money is being spent in the marketplace, not hoarded in bank accounts or paid to debtors. The livelihood of the economy depends on the spending and consumption on goods and services. With more saving, there is less potential for GDP growth. 

Some other quick thoughts:

Does the decrease in debt pay-downs over the past 7 years mean that people loaded with years of student debt are just saying “fuck it” and deciding not to pay anymore? I wouldn’t be surprised.

My top-3 looks a lot different than the 7 thousand peopled polled in this study. My list looks like this (order is subject to day-to-day change based on the weather and my mood):

  1. BEER

  2. FOOD

  3. SAVINGS

 

WE OUT HERE.

Food and Beer.jpg

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